MEMPHIS, Tenn. — Most people envision a home to create cherished memories. However, for the youth of Memphis, that dream is becoming increasingly elusive as home prices far outweigh salaries.
With housing sales plummeting double digits since August, the challenges in the real estate market are noticeable.
As the apartment market soars and the housing market dwindles in Memphis and much of the country, experts said most people think this is solely because of unaffordable housing options. But things like unit shortages and price misconceptions also play a large part in why many young adults don’t want homes anymore.
Daryl Lewis, the Principal Broker and owner of Infinity Group Realtors, has sold houses in Memphis for more than 25 years, and he said for America’s youth, that dream is not so real anymore.
"Young people really don't want the responsibility of owning a home," he said. "They like the idea of being able to get up and move when they get ready, so the idea of home maintenance and those kinds of things are not in their forefront."
He works with his team daily to find the best homes in the Memphis market.
"The availability of decent, safe and affordable homes is not available, so we're short housing stock," Lewis said. "So even if they wanted to buy something that was cheaper than renting, it would be almost virtually impossible."
According to the Memphis Area Association of Realtors, home sales are down more than 12% from August in Memphis.
Downtown, between September 2023 and September 2024, the total loss could be felt in nearly every way — from thousands of unit shortages to sales price, averaging an $80,000 loss. This is mainly due to a housing affordability crisis, where home prices have increased much faster than wages.
"We are focusing in on trying to build new infrastructure, new housing stock," Lewis said. "The resources that we need to make that affordable to the new home buyer is not really available. So what we're trying to do is find a significant balance between the two, and again, that's going to take city, county, federal and state government to get involved."
Even with the challenges, this job still feels like a dream for Lewis.
"The smile of a young child who finally has a backyard to play in — when you think about that and when they used to run around in the apartment," he said. "'Mom, I got my own bedroom! Mom, I've got my own yard!' That is a worthwhile accolade in this job."
Last week, the city of Memphis launched a middle-income housing program for developers to start building more affordable housing in this market.
Lewis hopes this will help them expand home opportunities for more young adults and interested buyers and hopefully rebuild this market.